Native American Business in Montana - DOC by scc55619

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									 MONTANA DEPARTMENT OF COMMERCE

      MONTANA INDIAN EQUITY FUND

FY 2010 GRANT APPLICATION GUIDELINES



                  Dore Schwinden
                      Director

                    Andy Poole
            Deputy Director, Administrator
            Business Resources Division

                     Karyl Tobel
           Assistant Division Administrator
            Business Resources Division

                      Ann Desch
 Director Small Business Development Center Network

                   Philip Belangie
    Entrepreneur Development Program Manager
           1121 East Broadway, Suite 116
             Missoula, Montana 59802
              Phone: (406) 721-3663
               Fax: (406) 543-2304
                 pbelangie@mt.gov




            APPLICATION PERIOD:
      September 27, 2010 – December 6, 2010
                  MONTANA DEPARTMENT OF COMMERCE

                       MONTANA INDIAN EQUITY FUND

  GRANT APPLICATION GUIDELINES FOR FY 2010 INDIAN EQUITY FUND
                         PROPOSALS



A. SUMMARY

There is a serious lack of owner’s equity available for Native American business
owners on the reservations and among the Indian population of Montana.
Owner’s equity is defined as the amount of monies invested by the owner in his
or her business. Unlike non-native small business owners traditional forms of
equity from home ownership, family and friends are often not available to the
Indian business owner due to widespread poverty. The Montana Indian Equity
Fund is a grant to assist a current Native American business or a new Native
American business owner. Because of the fund’s ability to offer these grants to
be used by the recipient for equity, the fund is able to play a unique role in
assisting in the growth of Native American small business. This money can be
used for a variety of activities such as the purchase of new equipment or the
development of a new product line. The fund requires a minimum of dollar to
dollar match which may include collateral such as cash, in kind, or loan funds
such as a tribal loan fund, a micro loan program, or a commercial lender.
Examples of in kind match may include inventory, supplies, equipment, tools or
vehicles that are part of the activity of the business. In order to determine the
success of the program, those businesses that receive funding will be required to
provide financial information regarding their business as requested to the
Department.

Existing business owners must show how the funding will support growth in their
business either through the development of a new project or with the existing
business strategy. This growth must be described in the narrative, financial
information (such as leases, contracts, invoices or vendor quotes), and financial
projections.

New business owners must show how the funding will support the success of
their start up idea. This must be described in the narrative, financial information
(such as leases, contracts, invoices or vendor quotes), and financial projections.

In fiscal year 2010, the Montana Department of Commerce, as recommended by
the State Tribal Economic Development Commission, will provide two grants of
$7,000 each to the seven federally recognized Indian Reservations and the Little
Shell Tribe. In addition, one $7,000 grant will be available to ―at large‖ enrolled
members living off the reservation whose goal is to better the economic



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development conditions on our Montana reservations. Applications will be
accepted beginning September 27, 2010 and will remain open until December 6,
2010 All applications will be considered on a competitive basis. Applications will
be recorded with date and time received by the Department and reviewed in
order of receipt. Applications considered incomplete or ineligible will be
returned to the applicant and their placement on the list of received
applications will be removed.          Applications that are not typed will not be
accepted. Receipt of an application does not imply a commitment for funding
from the Montana Department of Commerce (MDOC). Applications will be
reviewed for eligibility and appropriateness with state and program requirements.
Applications will be reviewed by a local review committee and the State Review
Committee.


1.      Eligible Applicants

The funds are available only to enrolled members of Montana’s federally
recognized tribes in Montana and to enrolled members of the Little Shell
Chippewa Tribe. All applications must include documentation of tribal
enrollment in the form of a Certified Indian Blood (CIB) Form or tribal ID.

The funds are available to applicants residing on or next to the seven
Indian reservations in Montana and members of the Little Shell Chippewa
Tribe residing in Montana as determined by each of the local review
committees. One additional slot is available to Montana enrolled tribal
members living at large in Montana.


2.      Eligible Uses of Funds

Funds can be used for the kinds of activities usually funded by a commercial
lender. These activities may include but are not limited to:

    Purchase of land, building and equipment.

    Purchase of assets including furnishings, equipment and technology.

    Working capital for the business.




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3.     Ineligible Activities

The following activity will not be funded:

    Reimbursement for activities completed prior to submittal of the fund
     proposal.


4.     Maximum Funding and Required Match

In fiscal year 2010, the Montana Department of Commerce will provide two
grants of $7,000 each to the seven federally recognized Indian Reservations and
the Little Shell Tribe. In addition, one $7,000 grant will be available to ―at large‖
enrolled members living off the reservation whose goal is to better the economic
development conditions on our Montana reservations The business owner must
provide a match on a 50-50 basis that must be firmly committed by the time the
funds are released. Firm loan commitments, such as funds borrowed from a
local bank, are acceptable forms of match. Collateral from the business owner,
either in cash or in kind (for example inventory or equipment), is an acceptable
form of match. The funds requested and the proposed matching funds must be
documented in the application.


B. APPLICATION REVIEW PROCESS

Applications for FY 2010 will be accepted beginning September 27, 2010 (post
mark date), by the Montana Department of Commerce-hereafter referred to as
the Department. All applications received by the end of the day on December 6,
2010, (post mark date) will be considered on a competitive basis.

Local Review Committee

The application process will include a review by a local review committee and the
State Review Committee. After submission to the Department, the application will
be reviewed by the local review committee composed of members from the local
business and business development communities. The local review committee
will include a member of the STED Commission if available or a member
appointed by the STED Commission member. The committee will include at a
minimum one reviewer who is a professional lender. Recommendations of the
local review committee will be forwarded to the State Review Committee.

State Review Committee

A final review will be made by the State Review Committee. A majority of the
State Review Committee will be Native American.




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The Committee will be composed of:

         Jennifer Perez Cole, Director of Indian Affairs, Office of the Governor
         Heather Sobrepena-George, Program Manager, Indian Country Economic
                Development, Montana Department of Commerce
         Jason Smith, Program Manager, State Tribal Economic Development
                Commission, Montana Department of Commerce
         Charlie Wright, Regional Development Officer, Montana Department of
                Commerce
         Philip Belangie (Non-voting member), Program Manager, SBDC
                Entrepreneur Development, Montana Department of Commerce

The State Review Committee will meet to review policy and application
requirements and recommend approval or disapproval prior to final approval by
the Director of the Department of Commerce.

The following five criteria will be used to evaluate the proposals for potential
funding.

    1.   Quality of the application
    2.   Business experience of the applicant
    3.   The financial projections
    4.   The marketing plan
    5.   Quality of the match

Financial Need: The fund is designed to assist the new business start up and the
small business that is growing. If either the local review committee or the State
Review Committee finds the applicant has sufficient wealth (business and/or
personal assets) that would allow the applicant to easily access funding through
a commercial lender, local economic development organization or other gap
financing, either of the committees may deny the application as outside the
scope of the program.




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The documentation will be reviewed under the following criteria:

    The documentation required for the fund is similar to the criteria
    required by a bank for a commercial loan. Please provide information
    on the following:

    a.   A business description that outlines the nature of your business,
         describes the product or service and its market, and identifies its
         customers and competition.

    b.   A personal profile that outlines the background and experience of each
         of the principals in a resume.

    c.   A proposal that states the fund request and its purpose.

    d.   A business summary (including a marketing plan) that outlines the
         business strategy for the next three years. This will aid the committee in
         determining whether the business will generate the cash flow needed to
         operate the business. (Include a three year projection.)

    e.   If a loan is included in the match, a repayment plan that proposes to
         repay the loan or outlines a repayment schedule. (This will be shown by
         line item in the above three year projection.)

    f.   Supporting documentation that includes copies of pertinent papers that
         support the information contained in the loan proposal. For example, a
         lease, contracts, invoices, vendor quotes or letter of reference.

    g.   Documentation of enrollment in a Montana federally recognized tribe or
         the Little Shell Chippewa Tribe. Documentation will be either a Certified
         Indian Blood (CIB) Form or tribal ID.

    h.   Outline the collateral that the business will use to secure the payment of
         the loan or as part of the match requirement. Collateral can include
         either personal or business assets: For example inventory, equipment,
         accounts receivable, real estate and automobiles.

    i.   Tax Returns for last two years if available.

    j.   Financial statements both personal and business.

    Incomplete applications will not be accepted.




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Applicants must submit a completed application supporting documentation. An
original and four copies of the application are required. Please submit the
original application and the copies to:

                             Philip Belangie
                     Montana Department of Commerce
                      1121 East Broadway, Suite 116
                           Missoula, MT 59802

Applicants may address any questions regarding the application or the Indian
Equity Fund to:

                               Philip Belangie
                              (406) 721-3663
                         Email: pbelangie@mt.gov


C. DISBURSEMENT OF FUNDING

The funds will be dispersed by the Department. Funding will only be made upon
the approval of both loan committees and final approval by the Director of the
Department of Commerce.


D. BUSINESS ASSISTANCE RESOURCES

To assist the applicant in the preparation of the application there are two
resources available. This assistance does not include preparing the business
plan for the applicant—it is essential that business owners understand their
business. The assistance is twofold: (1) One on one business counseling; (2)
Business management classroom training such as either the Indianpreneurship
or the FastTrac courses. These courses are offered throughout Montana.
Attached in Exhibit II are the organizations providing classroom business
education in Indian communities, organizations providing business assistance in
the Indian communities, and the Small Business Development Centers.




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                                       Exhibit I
                       FY2010 Montana Indian Equity Fund

                    Applicant Certification and Contact Form

The Applicant hereby certifies that:

ACCEPTANCE OF THE FUND PROGRAM REQUIREMENTS

The applicant will comply with all requirements established by the Montana
Department of Commerce and applicable State laws, regulations, and
administrative procedures.

The applicant accepts the terms, conditions, selection criteria, and procedures
established by the Montana Department of Commerce – Indian Equity Fund
Process and expressly waives any statutory or common law right the applicant
may have to challenge the legitimacy and propriety of these terms, conditions,
criteria, and procedures in the event that the applicant is not selected for an
award of funds.
APPLICANT - CERTIFICATION

To the best of my knowledge and belief, the information provided in this application and in
the attached documents is true and correct.

Name ___________________________________________
                  (Typed Name)

Title ____________________________________________

Signature ________________________________________

Date ____________________________________________

Phone Number ___________________________________

Contact Person for Further Information:

Name ___________________________________________

Mailing Address __________________________________

       __________________________________________

Email Address ____________________________________

Phone Number ___________________________________

Fax Number ______________________________________

Amount of Equity Funds Requested $ ________________________________


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                                Exhibit II



Organizations Offering Business Assistance on the Reservations

Blackfeet: Browning Community Development Corporation (406) 338-4015
Crow: Little Big Horn College Extension Program (406) 638-3139 and Crow
Economic Development Corporation (406) 638 3733
Flathead: S & K Holding Company, Inc., Micky Bourdon, (406) 883-4317, (406)
824-0440 (cell), or micky@skholdingcompany.com or Carol Cunningham at C2
Solutions (406) 261-3200.
Fort Belknap: Fort Belknap Community College (406) 353-4672
Fort Peck: Fort Peck Community College Please Contact, Lorene Hintz, SBDC
Director in Wolf Point (406) 653-2590
Little Shell Tribe of Chippewa: Please contract Philip Belangie, (406) 721-
3663.
Northern Cheyenne: Chief Dull Knife College Extension Program, Please
contact: SBDC Director in Colstrip, Sam Bixler (406) 748-2990.
Rocky Boy’s: Please contact SBDC Director in Havre, Joe LaPlante, (406) 265-
4945


Small Business Development Centers in Montana:

Billings: Big Sky Economic Development Authority, Rebecca Helvik, SBDC
Director, (406) 254-6014 ext 223
Bozeman: Montana Community Development Corporation, Gary Slane, SBDC
Director, (406) 728-9234
Butte: Headwaters RC&D, Julie Jaksha, SBDC Director, (406) 533-6780
Colstrip: Southeastern Montana Development Corporation, Sam Bixler, SBDC
Director, (406) 748-2990
Great Falls: Great Falls Development Authority, Rebecca Engum, SBDC
Director (406) 453-8834 ext 107
Havre: Bear Paw Development Corporation, Joe LaPlante, SBDC Director,
(406) 265-9226
Helena: Montana Business Assistance Connections, Dan Anderson, SBDC
Director, (406) 447-1510
Kalispell: Kalispell Area Chamber of Commerce, Chris Parson, SBDC Director,
(406) 758-2802
Missoula: Montana Community Development Corporation, Amita Palet, SBDC
Director, (406) 728-9234 ext 214
Wolf Point: Great Northern Development Corporation, Lorene Hintz, SBDC
Director, (406) 653-2590




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